AUD/USD Price Forecast – Australian Dollar Continues To Fall ApartThe Australian dollar continues to fall apart, showing signs of weakness going forward. The market as well below the 0.67 handle, so therefore it makes sense that we continue towards the bottom of the overall consolidation area.
The Australian dollar has initially tried to rally during the trading session on Thursday but continued the downward pressure as unemployment numbers out of Australia were a bit mixed, and the Peoples Bank of China cut rates. This shows that the Chinese are concerned about simulating growth, which of course has people worrying about whether or not the Chinese will be buying Australian hard commodities anytime soon. That being said, the market is very likely to reflect the fact that Australia’s economy may be heading for more trouble. Furthermore, the other side of the equation is the US dollar which of course continues to attract a lot of inflows.
AUD/USD Video 21.02.20
To the upside, the 0.67 level is an area that is very important, and therefore is an area that I believe will continue to offer resistance. Looking at the longer-term chart, the market goes down to the 0.63 handle, based upon the consolidation that the market had going on during the financial crisis. The fact that we are down in the financial crisis area tells you just how oversold the Australian dollar truly is. At this point, I’m going to be looking for longer-term “buy-and-hold” scenarios, but that’s probably something you are going to see on the weekly or even monthly chart. In the short term, I believe that rallies are going to continue to be sold into, as we have seen for several weeks. That being said, the US dollar continues to be the favored currency as long as the coronavirus and growth slowing continues to be a major issue.